In a time where there is much discussion about the rich, middle class and poor, you may not think that bankruptcy could be for everyone. While there are often huge differences in the numbers of people from any of these three categories filing for bankruptcy, the truth is that bankruptcy is a tool used by just about anyone when times get tough.
Middle Of The Road
Just like many other financial statistics, it seems as though the middle class is among the most popular for seeking bankruptcy protection. Of the estimated 1 million Americans who benefit from bankruptcy each year, two-thirds of those are considered to be middle class citizens. Although there is some disagreement as to the defined income levels of middle class, the median income level for this group of citizens hovers around $40,000 a year, for an individual.
Medical debt can a greater burden when one can afford health insurance premiums, but suffer illness or injury that is denied by the health insurance agency. In these instances, having insurance can actually work against them when medical providers can’t bill government assistance programs or write off the debt. The middle class may also find it easier to obtain credit, but then succumb to drowning in high interest rates and penalties if defaulting becomes imminent.
Regardless of income level or earning status, seeking help for debt burdens is something that anyone can benefit from. However, don’t fight the battle alone. Only a qualified Fort Worth bankruptcy attorney can help determine how bankruptcy can help.